“Inflation is transitory”
Posted May 10, 2022, 2:47 AM UTC
6.6K151
This is so fucking on point
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Thomas Sowell is a legend. Listened to a few of his books. Wise, wise man....
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This. Go watch some documentaries and interviews with Sowell too; very sharp guy who saw what was happening very early on before most people were talking about it.
Literally came from nothing, started with nothing and worked his ass off to get where he is today.
Made my 10 year old do a report on him for Black History Month and the teacher had no idea who he even was but was impressed by the end.
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That is wonderful!
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Came here to say this. There is a YouTube channel with many videos of him talking and it's fantastic
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[deleted]
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Thomas Sowell is a piece of shit hack
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I respect your opinion.
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He's a rightwing shill and correct as often as a broken clock. I read Vision of the Annointed and went through his references. He gets paid by a rightwing think-tank to churn out reagenesque nonsense.
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Funny how the Hoover institute is rightwing in such a leftist state.
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Not regulating SHF is standard rightwing policy. Not Sowell or anyone at Hoover will ever say a word against naked shorting, dark pools, etc. They exist to prop up these criminals. They have a problem with inflation because billionaires have a lot of money sitting around.
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Thats always a possibilty... 🤷♂️
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A fun thing to do while you watch Mad Men is calculate how much every price would cost in today’s money. Before this year’s recent crazy inflation, it was roughly 10:1 (possibly more, considering what happened in the 80s.) But 10:1 is a good lowball estimate.
It’s absolutely insane how much cheaper expenses were (like rent) relative to the buying power of the dollar back then. Especially considering that there was practically 0 inflation in the 50s and 60s. Even crazier are the tax allocations:
In 1960, the top tax rate was 91%.
Ninety One Percent, for everyone making over $10 million a year in today’s money. Why do you think the economy was so good back then? The top tax rate was 91 fucking percent. And guess what? No one called it socialism. Yeah, maybe super rich people bitched about it, but fuck it — that’s American capitalism for you. And the jobs fucking stayed in America, too.
Back then, “rich” meant something far different than it does in today’s era of greed and mania. The idea of 1300:1 CEO / average worker pay would have been totally unfathomable. You could get an apartment in Manhattan for the equivalent of $320/month. If you were willing to work, the sky was the limit. Hell, you could birth your child in a hospital for around $500 in today’s money — and that was the price without insurance.
Today, every single fucking thing you do gets squeezed. Renting an apartment. Applying for jobs. Investing. Healthcare. Starting a family. In this video game called life, our parents were playing on easy; we’re playing on Extreme Pro Max. It’s heinous, and fully immoral.
The only way to win is to squeeze them just as hard as they squeezed us. When the MOASS happens, don’t go into it determined to be merciless — rather, show them exactly as much mercy as they showed us. But as you do, realize that even in your deepest heart of evil, you could never voluntarily be as evil as these hedge fund criminals are.
Plus — and when business news comes after us, remember this — we didn’t defraud the market, robbing pensions and crucifying hardworking citizens. They did. All we did was buy and hold a stock that we like, just as Warren Buffett recommended.
So what am I going to do about it?
I’m going to hold. Until they feel the pain. Until they don’t just start to bleed, but bleed out. I am going to finally stand up to evil, using the exact same level of sociopathic firepower as they used on me, my family, my neighbors, my coworkers.
I’m going to hold, and hold, and hold —
And once they’re unconscious on the mat, once the full spectrum of their rampant fraud has been uncovered, once I’m richer than any of them could ever have dreamed of — only then will I sell.
It’s the only moral thing to do.
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im sorry, but im not showing any mercy to the guilty.
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Devil’s Advocate: Capitalism inflates the dollar because it forces markets to invest in industry to get returns that beat inflation.
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A $100 bill in 2022 will buy you 20% less than a $100 bill in early 2022
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Maybe we should start taking what we need then.
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🎶 lifestyles of the rich and the famous 🎶
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Can you detail the math on this? And for A $100 US bill? Not sure if I buy it
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You're not gonna buy much man
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Where have you been with all the inflation talks? That's what inflation is... Your dollar buys less than it used to. It has nothing to do with it being a 100 dollar bill lol, look at it at any scale... The dollar is worth less than it was because that is the definition of inflation
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I'm calling out the percentage he claims. Seeing as I'm in private equity, I am pretty sure I understand the current environment.
But throwing around a number like 20% is wrong. I prefer accuracy so people are educated on what things are - not spewing around random numbers that have no basis.
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That's fair, idk the numbers, but I found it strange how you mentioned it couldn't be that less for a 100 dollar bill. The 100 dollar thing threw me off tbh because you can look at it at any scale lol, he's claiming it's 20%. I don't believe that from the beginning of 2022 lmfao that must be wrong, but at the same time I don't believe the CPI so it's tough to get actual numbers
The way you worded it made it seem like you were confused in all honesty, but I see you are not. I'd agree there's no way it's a 20% drop in a few months lol. Since 2021, yeah I could easily believe that.
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Enter deflationary crypto.
Such as LoopRing.
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This is fucking stupid, loopring does not even try to be a currency, it is an open-sourced, audited, and non-custodial exchange protocol.
The tokens are there to lock if you want to operate an decetralized exchange on their blockchain.
Not a currency and no way people would collectively choose a chinese company's product as a central currency
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Deflationary currency is a bad idea, it encourages hoarding money
Also almost all cryptocurrencies are scams
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I agree it encourages hoarding, but I don't see that as a negative, especially when there are metrics like LRC has which require burning of tokens.
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It’s not going to be an effective currency if it’s more valuable as an asset/investment than something you spend.
This is the pattern of all crypto, promise of future returns gets people to buy, usage is low from there on out as everyone waits for the moon, then there’s a rug pull.
Though Loopring looks like it’s already had the rug pulled
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Okay? Sounds like you are used to people investing with hope rather than research. Anyone doing that is going to have a bad time.
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..hoarding = no investment. if currency was deflationary we would quickly stagnate the economy.
a little bit of inflation over a long time is a good thing for the actual nuts and bolts of an economy.
risking your money on a business is better for the economy than keeping it under a mattress....
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Ask yourself why you believe this to be the case. Cause if you really think about, it doesn’t make any sense. If our currency was deflationary, and the price of goods and services got cheaper and cheaper…why would people not want to purchase said goods and services? There are some necessities that everyone has to buy. If those necessities (like gas and food) were getting cheaper every year, it would allow people to spend even more money on other things, too.
Could it be possible that this whole “deflation is bad, inflation is necessary” mantra has been hammered into our heads for the last 60 years by the very people who benefit from it the most? They’ve somehow convinced the entire country that debt is good, but the only reason that’s the case is because debt is necessary in an inflationary economy. Without debt, there’s just no way to compensate for the diminishing purchasing power of the dollar.
You know what makes a currency inflationary? An unlimited supply. That’s the main mechanism behind inflation. You know what governments do with a potentially unlimited supply of money? They fucking spend it. They literally can’t help themselves.
But when there’s a fixed supply, the currency is deflationary. In this system, debt isn’t good. Debt is just debt. It’s exactly what it should be. Nobody should want to go into debt. Nobody should be rewarded for going into debt…but that’s exactly what happens with an inflationary currency. At some point interest rates will inevitably fail to keep up with inflation, so taking out a giant loan now to pay it back in 10 years actually makes you money. How the fuck does that make any sense? Yes less people will borrow money, but like I explained before, that isn’t a bad thing. It’s only a bad thing when your currency is inflationary.
Here’s a great article with some recent examples of deflationary economies and how they’re doing. https://mises.org/library/recent-economic-data-shows-good-side-deflation
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to your first point.
They won't buy them today because tomorrow it'll be cheaper.
multiply that by a million different business and a few thousand days and i think your model might have a problem...
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Dude you realize that a deflationary currency doesn’t have to grow significantly in value every fucking day lol. Ideally there would be something like 1-2% yearly deflation rates, which can definitely be achieved with a fixed supply currency. No family is gonna hold off on buying their kid a guitar because tomorrow it’s gonna be .005 cents cheaper.
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Damn, that’s some bullshit. We can’t win in this F’d up system
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WE BUY, WE DRS, WE WIN 🦍
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I’m not leaving but it’s hard seeing those numbers. It’s all fake anyway F-it
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This is the way 🚀🚀🚀
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"I went forward in time, to view alternate futures. To see all the possible outcomes of the coming conflict."
"How many did you see?"
"14,000,605."
"How many did we win?"
"One."
This is the way.
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No safe can keep your money safe...
-> oof, right in the feels
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Holy fuck Thomas Sowell on reddit. Did hell just freeze over?
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I know, I’m in shock rn. There are some pissed people in the comments but I’m glad that he’s finally being taken at his word and not nonsense from MSM.
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Audit/abolish the FED
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Freaking beautifully said 🙏🏼
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Additionally
The dollar's value has been cut in half since 1992.
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Politicians don’t control the printing press. The Fed is a private entity. We ask them for money and they “graciously” oblige…with interest.
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Federal Reserve system was created by the Federal Reserve Act of 1913. How do you separate "politicians" from that event?
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When they said you can regulate yourselves. When they block all public inquiries. When there is no public governing body to hold them accountable.
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You are basically saying the US Constitution is not the supreme law of the land. Whatever.
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I’m saying it needs to change. They’re called amendments. It was not created as a one and done document, it was specifically designed to be altered as times changed. Times have changed.
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Can you really look at the US today and say the constitution is the supreme law of the land?! Sounds like some rose-tinted glasses to me.
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Please replace “politician” with “private bank”.
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Based af
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Thomas Sowell is an absolute beast of an economist. Many leftists hate him because he speaks a lot of uncomfortable truths about government spending habits.
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Can we not do this. It's because his schtick is to blame everything on the government in order to not blame corporations (who own the government). Inflation has been happening forever, and the <2% inflation of the past isn't an issue if wages go up with it. But the only wages that beat inflation are on executive boards. So maybe you should be looking at that instead of assuming that cutting education budgets (or whatever) would magically make things better.
Conservative politicians want to cut welfare for poor people but won't talk about welfare for rich people which is massively more expensive and not economically beneficial. It's just class warfare.
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You’ve just recycled every lame talking point that main stream media uses to divide people along party lines. Gratz
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Love Thomas sowell.
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While not as anecdotal playing Red dead redemption 2 made me think how the fuck did we get from $5 will feed you for days to $5 will last a meal to $5 isn’t even half a meal. The whole “2% inflation is healthy economists say” is fucking propaganda so people don’t question the money printer.
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Dude, this fuckin guy. An intellectual juggernaut
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TS is a very smart man.
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Tbh you could have used someone other than Thomas Sowell to talk about this. He's not an authority on inflation, and he certainly doesn't have the average HODLer's best interests in mind.
Someone is pushing an agenda.
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Unless you sell it to a. Collector
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The worst part is that it’s not even the politicians that control it. The Fed is not a government agency and has no publicly ejected officials. It’s the fucking banks, regulated by themselves. They all belong in jail.
I wish I could publicly “eject” them.
I believe the correct dictionary term is "yeet"
Defenestrate, but I’ll accept either
Defenestrate specifically means to yeet out a window, so you’re incorrect. But informally it means to dismiss someone from power so I’ll accept it.
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#YeetCongress
You spelled "hang" wrong
Pubicly.
Who appoints the Fed Chair? Exactly. The argument that politicians don’t have a say is naive at best.
Its naive to think that the president is picking these appointees.. wall street will get, who wall street wants.
Pretty safe to say that this POTUS doesn’t do anything that he isn’t told to do by someone else.
Every POTUS* Fixed that for you. "If voting made any difference they wouldn't let us do it."
Mark Twain
Besides fondling young girls and smelling their hair
Couldn't agree more.😂😂
Except sniffing kids
Knock down the wall til only the street remains
You really think wall street is the final boss? There are people who control them.
They would still be wall street. Just because we don't know who they are...
All this shit stems from the global economic system.
The eurodollar/petrodollar whatever you'd like to call it, is coming to an end.
The powers that be, are positioning themselves to also be in control of the new system, after the transition takes place.
That’s fair. Just trying to shine a little light on the fact that The Fed is not technically a government agency. Feel like most people in this country don’t know that.
They don’t, they’re zombies sponges their information from cnn
Correct. It's a private for profit entity.
The FED chairman appointment is all theater. Just like the R vs L.
YES. I'm so happy people are waking up to this charade.
The fed chair gives the public the illusion of choice. You have no choice. You have owners. They own you.
To add to this: it's not even the Federal Reserve that is responsible for inflation - their printed money is currently being passed back and forth in the asset markets like always and you're seeing basically none of it.
The primary drivers of 'inflation' are price gouging (see: corporate profits currently) and the devaluation of currency and strain on potential growth that is the banks' capacity to print money via the creation of debt.
The impact the Fed's printer has can be put into perspective like this: every additional dollar they add to the "money supply" can be multiplied by banks overleveraging themselves by lending out the money they ostensibly exist to store, and what that dollar is able to buy is decided by the prices set by oligopolistic sellers seeking to maximize profit.
You are right. The policy/legality of fractional reserve banking is the real driver and it balloons the amount of money in the supply. The massive asset purchases of the fed don’t help either. This system that has been set up is completely moronic.
I'm sorry, but I'd say you're distracting as opposed to adding. What you're saying is miss leading. It all stems from the Fed. Reverse repo blowing up is a type of bailout (our money to the criminals). The Fed is a criminal cartel put in place to stifle competition and dictate policy and most importantly fleece us. It is the biggest parasite in the system and greatest Ponzi scheme ever developed. They allow for the fractional reserve banking system to be maintained by the lender of last resort when everything blows up. Ponzi goes bust? no problem TAXPAYER TO THE RESCUE! The Fed (lender of last resort) or more accurately creator of debt for We the People's which is nearly 30T. It is congress and The Fed that are directly responsible for this massive debt. The interest on this debt alone now consumes a vast amount of the taxes collected. I would say We the People are indirectly responsible, through our ignorance and all the deception. Corporate gouging is a big problem that can be addressed through enhancing competition, but I'm saying their contribution to inflation has got nothing on the Fed "They are the True Emporer of Inflation and Imposer of Debt". A decentralized blockchain is the best solution for us to Be OUR OWN BANKS and #EndTheFed.
Private gains, public losses. 💪
Which the politicians sold us out to.
Get rid of the politicians and torch the Fed🔥
If the DOJ doesn't the mobs will
Guys this is not how the Federal reserve or inflation works. This is some Smoovebrain nonsense.
Inflation is always happening. If you are in a deflationary environment that comes with a catastrophic recession/depression. The heads of the Fed is elected by the president, not the banks.
The Fed is doing the best it can, but they are slow and powerless. Their job is to keep Inflation moving forward but only at a moderate pace, the target is 2%/year. As Powell said the other day, they are trying to make precision moves with reactionary data and large tools.
Imagine openheart surgery with a shovel and a 5s delay.
The crooks are the banks and the hedge funds. They manipulate the system, set the prices, and create the risk.
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Life in jail is too good for them. Divide them up and send them to the most dangerous prisons in the world. Put them in gen pop with racial slurs tatted on their foreheads. They won’t be causing any more trouble after that.